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Want to Buy a HUD home? Here's FAQ

What is a HUD Home?

A HUD home is a home that was financed with a FHA insured mortgage and the owner fails to make the payments. The lender then forecloses on the home; HUD pays the lender; and HUD takes ownership of the home (and markets for sale).

Who can buy a HUD Home?

Any approved buyer who qualifies for a mortgage can buy a HUD home.

How can I find out what HUD homes are for sale?

Potential buyers may search for HUD homes on HUD’s website , or HomeSource’s

How do I buy a HUD home?

An individual interested in purchasing a HUD home should contact a Rob Rosa at (860) 558-2122 or by email at  We are certified with HUD to sell HUD homes. We have a valid NAID number and have the keys to allow you to visit any HUD home in CT.

Can I get a loan to buy a HUD home?
Yes any purchaser that can qualify for a mortgage loan can purchase a HUD home.  A Rubicon Crossings Realtor can put you in touch with the right loan officer to help you every step of the way.

If my bid is accepted, then what happens?

You can view the winners on the website under bid results. HomeSource will notify us by email of acceptance of the potential purchaser’s bid, the original contract paperwork must be received within 48 hours. Once the paperwork is received it will be reviewed for accuracy, and ratified. Once the contract has been ratified it is set for closing.

Can I submit bids on multiple properties? 

Yes, a buyer may submit bids on multiple properties. Investors will be required to close on multiple properties if they are the successful bidder. Owner Occupant bidders will be awarded one property.

Can I cancel my bid?

A buyer may submit a notice of cancellation before or after the bid is accepted. The buyer can also not submit their contract and/ or fail to submit pertinent financial information in which would result in a cancellation of the bid. 

Can I buy a HUD home as an investment?  When can an investor submit a bid?

Once the o/o-owner occupant priority period has expired HUD properties are then released into the open market at which time investors are able to submit bids to purchase the property. Please note that the priority period is granted with the attempt that owner occupancy will occur. To bid as an investor the website priority will say All Bidders.

What is Owner Occupant Period?

The Owner Occupant period is delegated to the first 15 days the property is listed and extended for Insurable properties. All owner-occupant offers received are reviewed and the property is awarded to the highest acceptable net owner-occupant bidder. At the conclusion of the 15-day Owner Occupant priority period if the property remains unsold, UI-Uninsurable properties will have a 5 day Exclusive listing period.

Does HUD help with closing costs and Selling Agent’s Commission?

HUD will cover allowable closing costs and the selling agent’s commission based upon a scale that is already in place.

How can I see the inside of a property?

A Real Estate agent must grant you access to the property.

How do I get keys to HUD homes?

Rob Rosa & Rubicon Crossings Realty agents have a set of keys to HUD homes. Most HUD homes that are available for sale are on lockbox for Realtors to achieve easy access. 

When should I do a walk through inspection?

Once the bid is accepted and the contract has been ratified the buyer may do a home inspection. 24-48 hours prior to settlement the buyer is urged to complete a final walk through of the property prior to settlement. 

If the HUD Home needs repairs, will HUD make them? 

No. HUD homes are sold in “as-is” condition, with out warranty. However, if the purchaser wants to borrow the funds to fix up the home, this is possible under certain conditions.

What is the 203 K program?

It is FHA’s rehabilitation and repair of a single family home program. Lenders work with FHA as well as purchasers to make financing easier and more affordable for the buyer to purchase the home and make the repairs necessary. The loan granted to the buyer will exceed the price offered for the home which will account for the amount needed to make repairs. The lender will use the projected escrow to account for the repair costs and the amount of the loan.

What is the repair with Escrow Program?

The “Repair with Escrow” program covers homes that can be sold using FHA financing as long as the repairs are done to the property, after settlement, which will be paid for out of the escrow account held by the closing agent. The escrow amount us predetermined prior to listing and noted in the advertisement for sale. These items included in the repair escrow are item that must be completed for the property to meet the minimum FHA standards. The escrow is financed by the purchaser over and above the offer price.

What does it mean when a property is “insured, “uninsured”, “insured with Escrow”?

Insured property- a property that is both eligible and qualifies for FHA-insured financing in its current condition.

Uninsured property- a property which has in excess of $5,000 in minimum property standards repairs needed and does not qualify for a FHA loan in its current condition, unless, the buyer is using the 203 K program.

Insured with Escrow – is a FHA loan issued for a property that has less than $5000 in repairs needed to meet minimum property standard. Minimum property standards are defined as items that affect the habitability of the home. The buyer must finance the escrow established and fix the identified repairs needed for the property within a certain timeframe from purchasing (taking ownership) the property.

These products are only applicable on a property being purchased using a FHA mortgage.
(In all cases conventional loans and cash can be used to finance these properties.)

About Me

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Rob Rosa, Berkshire Hathaway NE Prop.
My focus is helping people increase their lifestyle. I love my huge family and work tiredlessly to help them and my clients everyday. I have been working in real estate since 2000. I have been awarded numerous Top Agent awards and am currently ranked in the Top 1% of the Berkshire Hathaway HomeServices global network, over 52,000 agents. I am also the Founder and Instructor of Rubicon Crossings School of Real Estate: offering state of CT approved pre-licensing class, get info at My extensive experience is: top producing sales and marketing executive focused on quality service and relationship building. Have over 30 year’s experience helping people in busines, including with two Fortune 100 companies; UPS, UHG and Berkshire Hathaway HomeServices: project management, mortgage lending, residential, commercial and franchise sales, property management and real estate education leader. I live in East Hartford and work all over central CT. My office address is 196 Berlin Turnpike #5, Berlin, CT 06037 and I have been involved in many events in Rocky Hill and Glastonbury. I look forward to helping you every way I can.

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